Startup Originals Team
Union Minister for Road Transport and Highways, Nitin Gadkari, has projected that India’s logistics costs will fall to single-digit levels by the end of 2026. The announcement came during the inauguration of two major National Highway projects in New Delhi, a step seen as transformative for India’s infrastructure and global competitiveness.
India’s Logistics Challenge:
Currently, India’s logistics costs range between 14–16% of GDP-significantly higher than China’s 8% and the 12% average in Europe and America. High logistics costs make Indian exports less competitive on the global market, highlighting the urgent need for improvement.
Major National Highway Projects Inaugurated:
Prime Minister Narendra Modi inaugurated two key infrastructure projects in the capital region:
- Delhi Section of Dwarka Expressway:
A 10.1km stretch developed at a cost of ₹5,360 crore. It will offer multi-modal connectivity to hubs like Yashobhoomi, Delhi Metro’s Blue & Orange lines, the upcoming Bijwasan railway station, and the Dwarka Cluster Bus Depot. - Urban Extension Road-II (UER-II):
The newly opened Alipur to Dichaon Kalan stretch, along with fresh links to Bahadurgarh and Sonipat, constructed at a cost of ₹5,580 crore.
These advancements form part of a larger initiative to decongest Delhi and offer seamless travel within NCR.
Impact on Traffic and Connectivity:
According to Gadkari, the launch of these projects is expected to reduce Delhi’s infamous traffic jams by as much as 50%. The new highways are designed to trim travel times, enhance regional connectivity, and ease the movement of goods and people in and around the capital.
Road to Lower Logistics Costs:
India’s commitment to world-class infrastructure is central to lowering the logistics cost. With investments in expressways and multi-modal connectivity, the nation aims to match or better the efficiency levels seen in top global economies. Lower logistics costs are poised to enhance export competitiveness and boost economic growth.
Gadkari affirmed, “Before the end of 2026, the logistics cost of our country will come in the single digits, which will be very important for our exports. We will become even more competitive.”
Conclusion:
With determined leadership, record investments, and strategic projects, India is making swift progress in modernizing its transportation network. Achieving single-digit logistics costs by 2026 would be a game-changer for businesses and the economy, strengthening India’s position as a global export powerhouse.
